The cash account for Santiago Co. on May 31, 2021 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a.Checks outstanding totaled $4,820.00b.A deposit of $3,796.00 had been made too late to appear on the bank statement.c.A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally for a vendor payment on account.d.The bank collected $5,541.00 on a note left for collection.e.Bank service charges for May amounted to $45.00.f.A check for $790.00 was returned by the bank because of insufficient funds.Prepare a bank reconciliation as of May 31, 2021. Journalize the necessary entries.

The bank reconciliation statement is prepared to match the cash balance per book and the bank. Any…

Answered: The cash account for Santiago Co. on…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 1PB

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The cash account for Santiago Co. on May 31, 2021 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a.	Checks outstanding totaled $4,820.00
b.	A deposit of $3,796.00 had been made too late to appear on the bank statement.
c.	A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally for a vendor payment on account.
d.	The bank collected $5,541.00 on a note left for collection.
e.	Bank service charges for May amounted to $45.00.
f.	A check for $790.00 was returned by the bank because of insufficient funds.

Prepare a bank reconciliation as of May 31, 2021. Journalize the necessary entries.

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